Chances are that where you own a flat in Ilkeston you actually own a long leasehold interest over your property
Leasehold residencies in Ilkeston with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Ilkeston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ilkeston valuers.
Last Winter Hugo, started to get close to the 80-year mark with the lease on his garden apartment in Ilkeston. In buying his home two decades ago, the lease term was of little significance. Fortunately, he realised he needed to take action soon on a lease extension. Hugo arranged for a lease extension just in the nick of time last August. Hugo and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had descended below 80 years, the price would have escalated by a minimum £1,025.
Mr and Mrs. V Lefebvre took over the lease of a ground floor apartment in Ilkeston in February 2000. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Ilkeston with an extended lease were valued about £200,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed in 2101. Given that there were 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Mr O Rogers took over the lease of a one bedroom apartment in Ilkeston in June 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Ilkeston with a long lease were in the region of £260,200. The average ground rent payable was £65 collected quarterly. The lease ended in 2090. Taking into account 66 years as a residual term we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.